Estelle Morris: The provision for the Government indemnity scheme is made by the National Heritage Act 1980. The scheme facilitates public access to loans of works of art and other objects for public display made to museums, galleries and other such institutions by private owners and non-national institutions. It does this by indemnifying lenders against loss or damage to their loan. Loans covered by the scheme must be for public benefit. The scheme also covers loans of such objects for study purposes within borrowing institutions where this would contribute materially to the public's understanding or appreciation of the loan. Examples of this are enhancing interpretation or explanation to the public of objects or bringing into the public domain, the conclusions of any study.
	In the six month period ended 30 September, the following undertakings to indemnify were given under section 16 by the relevant Departments for objects on loan to national and non-national institutions. The Department for Culture, Media and Sport issued 580 undertakings, the Scottish Executive Education Department issued 184 undertakings and the National Assembly for Wales issued 139.
	The value of contingent liabilities in respect of undertakings given at any time under section 16 and which remained outstanding as at 30 September for the Department for Culture, Media and Sport are £2,462,963,504. The value of section 16 contingent liabilities as at 30 September for the Scottish Executive Education Department are £755,072,231 and £64,366,311 for the National Assembly for Wales.
	The value of non-statutory Government indemnities to cover loans handled by the Government art collection and which remained outstanding as at 30 September are £5,100,000.
	The value of non-statutory undertakings given to Her Majesty in respect of loans from the royal collection and which remained outstanding as at 30 September are £162,094,556.

Keith Hill: My right hon. Friend the Deputy Prime Minister is today publishing the revised chapters on "Energy Efficiency and Renewable Energy" (chapter 10) and "Tourism and Related Sports and Recreation (Chapter 14)—regional planning guidance for the south-east (RPG9). This follows the examination in public into the draft chapters in May 2003, the panel report in March 2004, and the consultation on the Secretary of State's proposed changes that closed on 3 September 2004.
	These chapters form an integral part of regional planning guidance (RPG) for the South East and represent a revision to RPG9, as published in March 2001. Following commencement of the Planning and Compulsory Purchase Bill (September 2004) this will now form part of the statutory regional spatial strategy (RSS).
	Other recent partial reviews are either completed or in their final stages. The Secretary of State has recently published his proposed changes on the Milton Keynes and south midlands sub regional strategy, we are awaiting the panel's report on the examination in public on waste and minerals and we have already published revised versions of the regional transport strategy (RTS) and the Ashford growth area amendments.
	Chapter 10 aims to promote a more sustainable pattern of energy use and generation whilst ensuring that development does not harm the region's environment or the quality of life of its people. Chapter 14 sets out policies on tourism, related sports and recreation and forms an additional chapter to RPG9.
	The consultation period for the proposed changes to the draft chapters ended on 3 September 2004 with some 90 responses from individuals and organisations respondents were broadly supportive of the proposed changes.
	In relation to chapter 10 the most significant changes were to policy INF 8 and supporting text to reflect that landscape character assessment should be used where available.  In relation to chapter 14 final changes are concerned with textual amendments and further description in sections.
	These chapters are integral and clearly identifiable parts of RPG9. It will be reviewed through the development of the spatial strategy for the southeast, resulting in the publication of the regional spatial strategy for the south-east—"the South-East Plan". This work has already begun and a draft is expected in 2005.
	Copies of the relevant documents are available in the Libraries of both Houses.

David Miliband: I am today announcing details of the allocation of schools capital over the spending review period, for 2006–07 to 2007–08. Investment in schools is at record levels, and every maintained school and every education authority and diocese in England will benefit from our capital programmes. As well as continued substantial investment in primary schools, we will now drive forward significantly the modernisation of the secondary school estate, further to my statement of 12 February announcing the first wave of authorities to benefit from the Building Schools for the Future programme.
	My announcement will support the five-year strategy for educational improvement which my right hon. Friend the Secretary of State announced in July, and continues and increases the largest sustained programme of capital investment in schools which this country has ever seen. From an inadequate base of under £700 million in 1996–97, government support for capital investment in schools has risen to £4.9 billion this year, will be £5.5 billion next year, £5.8 billion in 2006–07 and will reach £6.3 billion by 2007–08. This is a nine-fold increase since this Government came to power. The table at the end of this statement give details of our funding proposals.
	Since this Government came to office, we have provided substantial investment for schools—£20 billion up to this year—so that the vast backlog of neglect and repairs which made many schools virtually uninhabitable has been addressed. We have revised and improved our design and environmental guidelines for schools to reflect the standards-driven needs of twenty-first century teaching and learning, and to capture the benefits of ICT development. We have increased expectations on environmental quality, diversity and inclusion. We are placing schools at the centre of their communities, offering extended facilities and regaining the position that they held in earlier years, but lost as their buildings decayed.
	We have made very substantial progress in recent years. But much remains to do, to bring all schools up to the standards that we expect for our children. All schools and authorities will benefit from this capital programme, which provides over a further £17 billion investment over the next three years.
	Importantly, all schools will continue to get their own direct capital to improve their buildings. This will rise from £800 million in 2005–06 to over £1 billion in 2007–08, when the typical primary school will get over £34,000 and a typical secondary £113,000. This programme will, from 2006–07, include schools' direct funding for improving their ICT equipment, part of the £1.1 billion of ICT investment in 2006–07 and 2007–08.
	We will also continue to provide authorities with needs-related funding for their local priorities, £2.2 billion will be allocated by formulae to authorities across 2006–07 and 2007–08 from the modernisation, basic need and schools access Initiative programmes. From this announcement, authorities will have three year certainty on the bulk of their capital funding, and it will as usual be delivered through the single capital pot to enable authorities to plan flexibly to meet their schools' needs.
	To ensure that there is flexibility within the overall programme, we aim to increase the funding available to the targeted capital fund, to £500 million a year by 2007–08. This will ensure that we can support authorities which have exceptional capital needs, including exceptional pupil growth through the basic need safety valve.
	An equitable share of the capital settlement of over £900 million will also be provided for the needs of schools in the voluntary aided sector in these years.
	I am announcing today allocations from the targeted capital fund for 2005–06, of £233 million for a total of 51 local authority projects and 20 projects in voluntary aided schools. These cover a wide range of projects, including accommodation for pupils with special needs, sports facilities, extended schools facilities, modernisation of teaching accommodation, replacement of primary school buildings, and two new voluntary aided schools—one Jewish and one Islamic. I am providing a further £12 million of additional basic need funding where there is exceptional growth in pupil numbers in Haringey, Cambridge, Thurrock, and Milton Keynes.
	I am also announcing today the 20 new authorities which will be included in the second and third waves of building schools for the future (BSF), which aims to renew every secondary school in the country. The geographical areas, including 230 schools in total, have been prioritised according to relative educational and social need, as measured by pupils' GCSE attainment and eligibility for free school meals; and the planning and financial requirements of the programme. These allocations bring the total number of authorities included in the programme by 2007–08 to 39 over a quarter of all authorities.
	As we made clear in the five year strategy for children and learners published in July, BSF plans will be assessed according to rigorous school improvement criteria and funding will not be released until the Government and local people are satisfied that they meet the full potential for transforming standards. This includes considering academies and other options for new schools in their plans. As we said in the five year strategy, the Government will not stand by and allow local authorities to sustain failure by refusing to engage with Academies where they can meet parental demand for good school places. This policy is already being applied to wave one authorities, where most BSF plans are yet to be approved, and will be applied to all the further waves being announced today.
	Further, I am announcing our ambition that, by 2011, all local authorities will either have a major secondary rebuilding project under way through BSF, with at least three of their secondary schools included, or else have the resources to rebuild at least one of their secondary schools in greatest need through the academies programme and the targeted capital fund. By 2016, major rebuilding and remodelling will have started in every local authority in line with BSF plans developed by them. Final allocations for waves four onwards of BSF are of course subject to future public spending decisions and will be confirmed in future spending reviews.
	I am allocating over £830 million funding in 2006–07 and 2007–08 to support the development of additional academies to work to our target of having 200 open or in procurement by 2010. I am also providing a further £70 million to reach our target of universal specialism in secondary schools by the end of the period.
	My officials will give all authorities an indication of when they may expect to start in the BSF programme so that they can plan confidently and use their other funding efficiently before they get this major investment. We will work with every authority to see how these commitments and their own financial flexibilities through delegated funding and prudential borrowing can be combined to deliver maximum early progress on BSF.
	We have decided to allocate schools capital to a new joined-up budget for 16 to 19 provision in schools and colleges. The Learning and Skills Council will also contribute to the combined pot, which it will administer, worth in total £120 million in 2006–07 and £180 million in 2007–08.
	Schools which have robust sustainable travel plans put in place will be able to access a further £40 million of devolved formula capital over the period.
	I am providing all honourable Members with detailed information on all of today's allocations which affect the local authorities in their constituencies.
	
		Table: Schools Capital Funding from 2005–06 until 2007–08
		
			 Figures in £ million 2005–06 2006–07 2007–08  
		
		
			 Schools Devolved Funding 805 1,000 1,050  
			 LEA Delegated funding 
			 Modernisation 602 602 602 Note 1 
			 Basic Need 590 400 400 Note 2 
			 Schools Access Initiative 84 84 84 Note 3 
			 BSF Programme 2,118 2,177 2,240 Note 4 
			 Academies 207 365 467  
			 Other ICT 459 249 284 Note 5 
			 VA Schools 352 444 473  
			 Specialist Schools 56 35 35  
			 LSC 16–19 Budgetcontribution 0 70 100  
			 Targeted Capital Fund 200 300 500  
			 Sustainable Transport 20 20 20  
			 Other Programmes 22 9 10  
			  
			 Total 5,515 5,755 6,265  
		
	
	Notes:
	1.   Modernisation is allocated on pupil numbers and relative building need from survey data.
	2.   Basic Need is allocated on pupil numbers and projected pupil number growth.
	3.   Schools Access Initiative is allocated on pupil numbers.
	4.   Includes £1.2/1.25/1.3 billion of PFI credits.
	5.   2006–07 and 2007–08 figures exclude ICT capital delivered directly to schools as devolved funding.

John Reid: On 22 July, Official Report, column 61WS, I announced the completion of the review of my Departments arm's length bodies (ALBs). I made it clear then that there is considerable scope to improve efficiency and reduce bureaucracy in the ALB sector and I reiterated the following parameters for the review:
	a 50 per cent. reduction in the number of ALBs;
	a saving in expenditure by ALBs of £0.5 billion by 2007–08; and
	a reduction in posts of 25 per cent. in the same period.
	Detailed discussions have been held with all interested parties about how to implement these changes. We are now publishing the next steps to be taken in implementing the review of the Department's arm's length bodies, the conclusions of which were published in July in the report "Reconfiguring the Department of Health's Arm's Length Bodies". As well as next steps, reconfiguring the Department of Health's arm's length bodies implementation framework, sets out the principles, processes and time-scales by which we will implement the ALB change programme. Copies have been placed in the Library.
	The ALB programme is part of a wider programme of change to improve efficiency and cut bureaucracy in the management of the national health service. The objective of all these activities is to reduce the burden on the frontline and free up more resources for the delivery of frontline services to patients and users. This wider programme is to ensure that the increased investment in the NHS—42 per cent. in real terms from 2003–04 to 2007–08—is accompanied by modernisation that cuts out waste.
	The ALB change programme itself will deliver a redistribution to the frontline of at least £0.5 billion a year by the end of 2007–08. The number of ALBs will be reduced to 20 from the base year of 2003–04, despite the sector assuming new functions under statutes approved by Parliament. Even with these new functions, which bring new costs, we will be setting the 2005–06 budget for the ALB sector so that it will cost about £100 million a year less to run than in 2003–04. A further £200 million a year will become available for redistribution to the frontline by the end of 2006–07 and again in 2007–08. This will inevitably mean significant changes in the organisation, staffing, financing and governance of the ALB sector. These changes must now be delivered.
	One of the changes in the ALB sector is the establishment of a health and social care information centre to coordinate and streamline the collection and dissemination of data to those who use it. This will build on the work done by the Department in reducing demands for information from the NHS frontline. Since March 2003 the Department has reduced the burden of central returns by about 160 person years and this will have risen to 400 person years when we reach April 2005. That means 400 people in the NHS will be freed up for frontline operations through the Department reducing and simplifying its statistical collection. Now it is the turn of the inspectorates, strategic health authorities, primary care trusts, royal colleges and others to follow the Department of Health's example by streamlining their statistical collection through the new health and social care information centre.
	Cutting overheads is now a key part of any modern business. That is why we expect substantial reductions in the overheads of the ALB sector. By 2007–08 we expect annual savings in overheads of £35–40 million and significant progress towards that made in ALB plans from 2005–06. This will be achieved by merging bodies, sharing back office services and moving to cheaper locations.
	There is a tendency for all organisations to undergo "mission creep" and add functions. The ALB Review is about slimming down the sector to the essentials and to do those essentials more effectively. That is why we are expecting major savings for redistribution to the frontline from those central services in the ALB sector. They will be regrouped into eight key central businesses:
	NHS Blood and Transplant
	NHS Litigation Authority
	Appointments Commission
	NHS Institute for Learning, Skills and Innovation
	HSC Information Centre
	National Programme for IT
	NHS Business Services Authority
	NHS Purchasing and Supply Authority
	In 2005–06 we aim to have in place the boards and executive teams to streamline the business processes of this group of businesses and to reduce their overheads. At the same time, we will see a further dividend from the supply chain excellence programme which is already delivering better value for the local NHS by using the purchasing power of the NHS as a whole more effectively.
	In 2005–06 the NHS will benefit from a minimum of £100 million in savings from more efficient procurement led by NHS PASA. By the time we get to 2007–08 we expect that procurement activities led by NHS PASA, together with other supply chain initiatives such as the recently negotiated pharmaceutical price regulation scheme, to be delivering over £800 million savings annually for use by the NHS frontline.
	The Government's better regulation task force have shown the way forward in reducing the burden of regulation. Linked to this is the need to systematise more effectively the work of inspectors and reduce the burden they impose on the NHS frontline. The Government have already merged some inspectorates. The ALB review will continue this process and build on the work of the new health inspection concordat. This concordat will reduce the number of inspection days in the NHS, cut the information demands, especially through the new health and social care information centre, using more self-assessment and providing "inspection holidays" for high performing organisations. The budgets of the inspection sector will not be allowed to grow in an uncontrolled way, so that the inspection burden can be better contained than in the past. Full cost recovery will be pursued for independent sector inspection to reduce in stages the burden of their costs falling on the NHS.
	Alongside cutting the inspection burden, the Government have abolished the controls assurance standards as a separate set of standards, and reporting to the centre has been stopped. Key elements of the controls assurance standards have been incorporated into the standards for better health which will enable NHS trusts to link assurance on controls directly to NHS objectives. These and other changes announced in the recent Cabinet Office report will cut the NHS burden of collating and reporting information by about 85,000 person days a year, thereby freeing up over 350 staff at the frontline for other work.
	There has been much unfair criticism of the Government's use of targets. Targets have helped to save lives. Cancer mortality rates in the under 75s have fallen by 12 per cent. and coronary heart disease mortality rates in the under 75s by over 20 per cent. in less than six years. A specialist sees 99 per cent. of people with suspected cancer within 14 days—compared with only 63 per cent. seven years ago. Targets have reduced waiting times. There are now 300,000 fewer people waiting for inpatient treatment than seven years ago. And their average waiting time then was over 18 months and now it is half this. But the time has now come to reduce the number of national targets from 62 in the last planning round to around 20 for the next three years. And more targets will now be locally determined to reflect local priorities.
	"Local" is where the NHS action is and will continue to be. Eight regional offices and 100 health authorities have been replaced by 28 strategic health authorities. The Department of Health's change programme has reduced the size of the centre by 38 per cent. The ALB Review will reduce the staffing of that sector by 25 per cent. But the NHS still needs good managers to run its operations and administrative and clerical staff to support doctors, nurses and other health professionals to do what they are good at—looking after patients. All these changes have not led to a growth in NHS management costs. In 2003–04 management costs were 3.7 per cent. of net NHS expenditure compared with 4.0 per cent. in 1996–97. We will keep those costs under control. The ALB Review will help us to do that by ensuring that the local NHS gets efficient, better value for money from central services, a contained regulatory and inspection system and fewer demands made on it from the centre.
	Ministers are determined to secure the changes set out in this framework document within the time-scales it proposes. They will be fully supported in that purpose by Sir Nigel Crisp as the accounting officer and his departmental management board, which includes the senior official responsible for seeing through this change management programme successfully.